Encana Corp. (NYSE, TSE: ECA) announced Sept. 26 it completed the sale of its stake in PrairieSky Royalty Ltd. (TSE: PSK) for $2.4 billion (C$2.6 billion).
Calgary's Encana sold 70.2 million common shares of PrairieSky at a price of $36.50 in a secondary offering. The offering was made on a bought deal basis through a syndicate of underwriters co-led and joint bookrun by TD Securities Inc., CIBC, BMO Capital Markets and RBC Capital Markets. Encana no longer holds any interest in PrairieSky.
"The creation of PrairieSky has unlocked significant value from Encana's royalty business and the successful closing of the secondary offering marks a major milestone of the strategy we announced last November. The proceeds significantly increase the strength of our already healthy balance sheet, leaving us well positioned as we continue to aggressively pursue our strategy," said Doug Suttles, Encana president and CEO, in a statement.
PrairieSky, which went public in May, generates revenue by charging drilling levies to other producers on its property.
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